ESI Registration and Returns Filing Procedure

An employer must Form-1 within 15 days of the ESI Act becoming applicable to their establishment or unit.

Yes, it is mandatory for all eligible employers to register their unit/factory/establishment. Hence, it is the legal responsibility of the employer to register their unit/factory/ establishment under the ESI Act within 15 days of the Act becoming applicable to them.

Every employer who is covered under this Act must comply with various guidelines. These rules specify how to deposit monthly contributions, file half-yearly returns and report to authorities in case of any changes in the business activity, address, ownership or management of the business. Additionally, registered businesses must also follow compliance requirements regarding the maintenance of registers and records.

No, the right to receive any benefits under this Act is not transferable.

The ESI Code number is a 17-digit unique identification number allotted to every registered establishment. This number gets generated through the ESIC portal when the employer submits all the required information. It may also be generated on receipt of a survey report from the Social Security Officer.

Once a factory or establishment gets covered under the Act, it will continue to be covered even if the number of employees falls below the minimum required limit at any time or if there is any change in the manufacturing activity.

If an employee’s wages, excluding the remuneration for overtime, exceeds the wage limit prescribed by the Central Government, they will continue to be an employee till the end of that contribution period. Therefore, their contribution must be deducted and paid on the total wages earned by him.

No, the overtime done by the employee is not included for calculating the wage ceiling limit for coverage. But, it is included for the payment of the contribution to cover the risk during the period of overtime work and to enable receiving the cash benefits at an enhanced rate.

The contribution must be paid into a bank duly authorised by the company within 21 days of the last day of the month in which the contribution is due for any wage period.

The employer must file a monthly contribution online through the ESIC portal, and the to be paid is calculated regularly. Additional details to be provided include the number of days employed, wage amount and payable contribution. The total amount of contribution for each month must be deposited in any SBI branch in cash, cheque or demand draft on a generation of such a challan through the ESIC portals. The contributions can be paid online through SBI internet banking too.

11. Does the employer have to pay any interest in delayed payment?

In addition to the Muster roll, the wage record and the books of Account that are maintained under other laws, the employer must maintain the following records for the ESI:- A) The accident Register in Form-11 B) An inspection book. C) Employee’s Register for the employees deployed to the principal employer

The registration of the employee helps identify the employee and provide them with the benefits under the Act which are related to the contributions paid by the employer on behalf of each of the insured employees.

After registration, the employer can give a temporary identity certificate after affixing the employee’s photo and authenticate it for use for 3 months. This identity card acts as an identification for claiming medical benefits at dispensary/ hospital and for claiming cash benefits at the ESI Branch Office.

The scale of the medical benefit includes the complete medical treatment from start to finish.

No, there are no qualifying conditions or contributory conditions that are attached for claiming the disablement or dependent benefit. Even if an employee meets with an employment-related injury on the first day or on any other day before he completes his first contribution period, the benefit can be claimed.

The dependents are entitled to full medical care as and when required, to artificial limbs and artificial appliances as a part of the medical treatment. The medical benefits are also admissible to dependents during the period the employee is claiming an unemployment allowance. In case of their death during this period, their family will continue to receive the medical benefit until the completion of those twelve months. This also includes reimbursement of the expenditure incurred on the funeral of the deceased employee. In case of death of an insured employee due to an employment injury, the widow, widowed mother and children are entitled to the dependants’ benefit. All benefits due to the insured employee at the time of death are paid to the nominee.

In the case of factory registration, a principal employer is any one of the following; A) Owner B) Occupier C) The managing agent of the owner or the occupier D) Legal representatives on the behalf of a deceased owner or an occupier E) Factory manager In the case of establishments belonging to the Government of India; Authority specified Head of the Department In other cases, the principal employer is the person responsible for the supervision and the control of the establishment.

An Immediate Employer can be any or all of the following; A) Individuals who execute any kind of work inside the premises of the principal employer’s factory or establishment. B) Any individual who executes the work in a factory or an establishment outside the premises supervised by the principal employer or his agent. C) Anyone who gives on hire the services of his own employees to the principal employer of a factory or establishment. D) Contractors

Any individual employed for wages in a factory or establishment, and: A) Directly employed by the principal employer, in an establishment or factory within the premises or elsewhere, or in any other part, department or the branch of the factory or establishment. B) Employees of the immediate employer C) Paid directors of a company The following individuals are excluded: A) Apprentice B) An employee who receives wages above the ceiling limit for the coverage prescribed by the central government C) Member of the Indian armed forces

The financial year is divided into two six-monthly contribution periods, i.e., 1 April to 30 September and 1 October to 31 March of the next year. The relevant period of benefits corresponding to each period of the contribution commences three months after the end of that contribution period, i.e., Jan to June and July to December.

The scale of medical benefit includes complete medical treatment from start to finish. If an employee requires medical treatment and is absent from work for medical reasons, the Sickness benefit is paid for the period of absence after it is confirmed by an Authorised Medical Officer. This is for a period not more than 91 days in two consecutive benefit periods (one year) at 70% of the standard benefit rate, subject to the payment of the contribution for not less than 78 days in the corresponding contribution periods.

Disablement is a condition resulting from an employment injury, which may render the employee briefly incapable of doing his work and it necessitates medical treatment (temporary disablement). This may reduce his earning capacity (permanent partial disability) or it may completely deny the employee of his ability to do any formwork (permanent total disability). An employment-related Injury is a personal injury by an employee through an accident or occupational disease in the course of his employment.

The dependents’ benefit is a monthly pension that is paid to the dependents of an employee who dies as a result of an employment-related injury or an occupational disease.

The maternity benefit is a cyclical payment to a female employee for the period of absence from work. This is due to confinement, miscarriage, sickness due to pregnancy, or premature birth of a child. The amount of maternity benefit is equal to the standard benefit rate.

A lump sum amount not exceeding ₹10,000/- is towards the expenditure on the funeral of a deceased employee. It is paid either to the eldest surviving member of the family. Or if the deceased employee was without family or not living with his family at the time of the death. Then the amount is paid to the person who actually performs the funeral of the deceased employee.

It is the mean average daily wages with the calculation by dividing the total wages paid during the contribution period by the number of days for which these wages were paid.

The advantages of an ESI registration are as follows: A) Offers complete medical benefits B) Includes protection of dependants C) Used at other ESI dispensaries and hospitals D) Reimburses all payments made E) Takes into account the requirements of the disabled F) Gives access to Medical care in ESI dispensaries/Hospitals